Sinopec's Inconvenient Store Valuation

Investors are excited about pumping the gas-station business of China's big state refiner for all it is worth. The problem is, even if the plan to sell part of this business unlocks some value for the company, there is little more investors can gain.

China Petroleum & Chemical, better known as Sinopec, said in February that it would sell 30% of its retail unit to outside investors to diversify ownership and tap the potential of the 30,000 gas stations and 20,000 convenience stores it owns across China. Investors have...